See anything wrong with this logic? Well, actually there are several things. People deserve life, liberty and the pursuit of happiness.
If 62% of Americans are living paycheck to paycheck, it is not because of income it’s mostly because of spending even at modest income levels. If every American received a 10% raise most would raise their standard of living and spend it.
A savings account is a luxury? Incredible ‼️
Look around and see how money is being spent – foolishly. Let me at your shopping cart and I’ll find money to put in that savings account.
QUINNSCOMMENTARY 
Or, “One man’s meat is another man’s poison.”
It’s a paradox.
Sorry, but if 62 percent of the population suddenly, or even gradually, began saving a larger portion of their income, how many other persons would be put out of work?
Even 31 percent. The whole macroeconomy is a delicate balance. If all these new savers invested their savings, what return on investment could they expect (if any)?
Nature abhors a vacuum. Water seeks it’s own level. Yadda, yadda, yadda. The U.S has one of the highest per capita incomes in the world, and one of the greatest income disparities within the country.* It is unsustainable. It will level out. That is inevitable.
Of that 62 percent living paycheck to paycheck, two thirds are buying luxury items or entertainment/hobby items. The other third are trying to get enough gas (or bus fare) to make it to payday. Most could not, or should not, even consider a savings account.
*Also, one of the lowest tax rates.
LikeLike
Where do you get the one and two thirds? It will level out with more people reaching retirement with grossly inadequate funds.
LikeLike
62 percent paycheck to paycheck.
The lowest twenty percent of U.S. households (that’s about one third of your paycheck to paycheck group) has a max household income of $28,000 and an average of $15,000. Most of them have very little choice but paycheck to paycheck. Most of my family is/was in that group. Many retired on SS only and literally died in debt.*
The middle quintile has average h/h income of $70,000 and tops out at $90,000. Along with the second quintile (average $40,000 income) this group would be more able to save for retirement. I’m sure many did, while others spent more freely, paycheck to paycheck (aka “stimulated the economy”)
Fourth and fifth quintile ? All six figure incomes and above, if they don’t save for retirement, who’s to blame? I don’t know. Can’t even imagine their finances.
But an is correct, No profits if people don’t spend.
*Not necessarily unhappy, though, for many, that’s life.
LikeLike
Capitalism: an economic and political system in which a country’s trade and industry are controlled by private owners for profit.
No profits if people don’t spend.
LikeLike
True. No spending, no jobs.
LikeLike
“it’s mostly because of spending “… Amen to that.
LikeLike
And Nina votes along with folks who believe in the free lunch theory and the Feds can and should adjust your college debt. Just disagree with Nina and her ilk and see what she calls you. If it wasn’t so sad it would be funny.
Can you blame Nina? If that is what you have been taught then that’s what you believe.
LikeLike